Five Reasons You Must Join the Cashless Revolution

The heat was terrible; the water he carried with him already over. Maybe he shouldn’t have gulped it all down so soon. He jumped once again, cursing when he earned a furious glare for hitting the shins of someone standing nearby. He apologized quickly. He did not want to rise the ire of the man more. He peeked around the lady and whooped when he realized there were only three more people to go. Feeling relieved he eagerly waited for his turn. ‘I’m sorry, Sir. That was the last of the money.” ‘What?!’ ‘The bank will come around in another two hours to fill it again’ ‘But I have been waiting for four hours! You can’t do this.’ He felt like crying and screaming at the injustice of it all. ‘I’m sorry, Sir.’

Almost a year after demonetisation, it is time to take a look around and gather how the country has adapted to the lack of ready cash. Today, nearly all the neighbourhood kiraana stores and sabji waalas accept payments through e-wallets. One would be hard-pressed to find a supermarket without a POS machine. Ordinary citizens are becoming quite savvy at digital payments, and most businesses have embraced the idea of adapting to it.

According to a recent study published by the US-based media agency Zenith, there will be a rise in smartphone ownership globally, with India possibly having 530 million users. With more people having access to digital payment options, there will indeed be a surge in the cashless economy. A Google-BCG study revealed that Indian digital payment industry would grow to $500 billion by 2020. The non-cash transactions are expected to exceed the cash transactions by 2023. Thus, when one takes into account both the smartphone penetration as well as progressive regulatory policies, it is not surprising that digital payments industry is growing exponentially.

Here are our top five reasons why we think you should step up and join this digital revolution:

Convenience Replaces Conventional Means

Imagine walking into a supermarket, standing in a queue to bill your purchase, and then juggling your belongings while trying to find that exact change required. Quite a few times, you have walked away holding a toffee instead of a one rupee coin and felt cheated. Or felt embarrassed because you had to return a few items since you did not have enough cash at hand. With digital payments, there is no such hassle: Walking up to the counter, swiping your card or scanning a QR code takes so little time and the exact amount is paid.

Moreover, having cash directly transferred to one’s account is more convenient for a company as well. There are no weekly or bi-weekly trips to the bank to deposit the revenue while maintaining the necessary balance required to run the business. No long nights of calculations and worries, just a magical method that reduces your tension significantly.

Security Unlike the Past

How many times have you clutched your purse tightly after withdrawing cash? Or patted your back-pocket to make sure the wallet is still safe? The two-part authentication for most digital transactions gives the customers the highly sought after safety when it comes to payments. Adopting online payment methods reduces the security issues of carrying ready-cash significantly. If your wallet is stolen, it is easier to block your card or mobile but probably impossible to get your cash back. It is also the safer option while travelling.

For businesses, you do not need a trustworthy accountant to keep track of your revenue. The human error is decreased significantly as well as the threat of office theft eliminated. Every entry is logged on the computer, and your money will be safe.

Tracking Spends and Budget Discipline for Healthy Expenditure

At the end of every month, is it a common occurrence for you to wonder where your hard-earned salary disappeared? Do you wish to understand how much money you are spending on food or shopping? Well, digital payments make tracking your expenses delightfully easy. Most banks offer a Spend Analyzer that monitors your spending and gives you a chart of your expenses (something you won’t be able to do if you merely withdraw money from an ATM and use it to your heart’s content!). This can in turn help you to keep a check on unnecessary spending, and thereby help you formulate a healthier budget.

Keeping an eye on your consumer’s buying habits is also an attractive incentive for businesses to adopt digital payment options. By gathering these data, you can tailor the experience of your customers and leave them wanting for more.

More Discounts, More Shopping!

Ever since demonetisation happened, the government has come up with series of freebies and discounts for digital payments to incentivize a move towards a cashless economy. There are service tax waivers for card transactions up to Rs. 2000. A 0.75 percent discount on petrol, if purchased digitally. Add to this cashback and discounts as well as reward and loyalty points offered by different stakeholders, and the customers are in for a treat!

Giving discounts are major sources of revenue for any business. By cutting costs on multiple fronts while using digital payments, you can offer constant discounts for your customers. This means you are almost always on sale!

Small Gains for Happier You!

Add to the above points, the smaller gains you can have if you go cashless. Next time that friend who almost always conveniently forgets to pay you back asks for money, you can happily say no. After all, you had stopped withdrawing cash so often, right? No more flitting from ATM to ATM to find the cash you need. Forgot to take your wallet? Your phone will pay for you. Remember how your biology classes taught you hard-cash carries the largest amount of germs and bacteria? Well, say goodbye to those as well. And if you are concerned about the environment, well going digital is going green.